IRS Form 1099 Explained: Know the Requirements in Order to Remain in Compliance

February 14, 2011

Bmfweb
Many of us, at one time or another, have seen an IRS form titled 1099. Most of us are familiar with the more usual versions of that form including:

  • The Form 1099-INT – which is used to report interest paid to someone in excess of $10 per year
  • The Form 1099-DIV-- which is used to record dividends and/or capital gains distributions paid to someone in excess of $10 per year
  • The Form 1099-B – which is used to report the proceeds from the sale of a capital assets other than real estate
  • The Form 1099-S – which is used to report the proceeds from the sale of real estate, typically other than one’s principal residence (provided the appropriate information was provided to your lawyer or other representative at the time of sale.)

In each of these instances, the purpose of a Form 1099 – whatever its specific designation – is to provide information to the Internal Revenue Service so that they can cross check the same to make sure that the recipient is properly reporting the payment and/or income.

Another type of Form 1099 is the Form 1099-MISC. ...

You may read more at the link below.

by: Bruce M. Fogel

BusinessWest
February 14, 2011

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